Demand side participation
DSP captures direct response by industrial users, and consumer response through programs run by retailers, DSP aggregators, or network service providers.
AEMO has updated its estimate of current DSP in the NEM, based on new data on loads providing DSP obtained late 2017. This allowed AEMO to improve the estimate, by estimating all DSP based on historical performance (previously, this historical information was only used for estimating larger industrial load DSP).
The estimated level of DSP available for summer 2017-18 and winter 2018 is shown in the tables below. It reflects the observed 50% probability of exceedance DSP resource response to different wholesale price levels in recent years. Actual responses vary significantly from occasion to occasion.
Reliability response DSP estimates are also included, referring to situations where additional DSP is observed in response to a Lack of Reserve notice (LOR2 or LOR3) being issued (see National Electricity Rules, rule 4.8.4 for definitions).
Values in the tables are cumulative. For example, the table shows the estimated price response is 34 megawatts (MW) for Queensland when prices exceed $1,000 a megawatt hour (MWh), and 40 MW when prices exceed $2,500/MWh. However, if a LOR2 or LOR3 is declared, the total DSP response is estimated to be 66 MW in Queensland, should it occur during summer.
The capacities listed exclude any DSP procured through the Reliability and Emergency Reserve Trader (RERT) process, including the joint DSP program by ARENA and AEMO.
AEMO will forecast possible growth in DSP as part of its Integrated System Plan to be published mid-2018.